NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Show Strength on Monday

Nasdaq 100 Technical Analysis

The NASDAQ 100 rallied slightly in the early hours on Monday, as we continue to see a lot of noisy upward pressure after the election. I think at this point, it’s more likely than not to be a situation where the market is eventually going to try to get to the $22,000 level, but we are a bit stretched.

So be aware of the fact that we could get the short-term pullback that I think quite frankly will end up being a nice buying opportunity. The 50-day EMA is near the $20,000 level and rising. So, I think that is something that you need to pay close attention to as a floor in the market, if you will. I have no interest in shorting and I do think that 22,000 is a very realistic target.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues to rally and at this point in time it looks like it is going to set its sights on 45,000 over the longer term. I do believe that on a pullback we probably have to look at somewhere around 43,500 as a major support level as it was a previous swing high. Again, we are a little overdone, but really there’s nothing on this chart that suggests that we can’t continue to just power to the upside.

A short-term pullback should continue to be buying opportunities, despite the fact that interest rates in America continue to climb. Quite frankly, everybody is throwing their money at anything American they can after the election. That includes things that normally don’t correlate, such as the US dollar and equities.

S&P 500 Technical Analysis

And finally, the S&P 500 continues to flirt with the 6,000 level. Again, this is going to be a situation where anytime the market pulls back, there should be plenty of traders willing to get involved and pick up value. But it’s probably going to struggle in this immediate area if it does not.

And once we get through the 6,000 level, especially on a daily close, that signals the next move higher in the market, probably running towards the 6,200 level in the short term, maybe even as high as 6,600 before it’s all said and done based upon some measured moves that I had taken previously. I have no interest whatsoever in shorting any of the U.S. indices.

For a look at all of today’s economic events, check out our economic calendar.